KUWAIT
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Performances and Phonograms Treaty
Lack of signature of the WIPO Performances and Phonograms Treaty
Kuwait has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal
KUWAIT
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Effective protection covering trade secrets
Lack of regulatory framework covering trade secrets
Kuwait lacks a comprehensive regime for the protection of trade secrets.
Coverage Horizontal
KUWAIT
Reported in 2024
Pillar Telecom infrastructure & competition |
Indicator Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is a regulatory obligation in Kuwait for the sharing of passive infrastructure to enable the provision of telecommunications services to end-users, and that this is not only mandated but also actively practised in both the mobile and fixed sectors.
Coverage Telecommunications sector
KUWAIT
Since October 1980, entry into force in February 1981
Since June 2013
Since February 2016, as amended in April 2017
Since June 2013
Since February 2016, as amended in April 2017
Pillar Telecom infrastructure & competition |
Indicator Maximum foreign equity share for investment in the telecommunication sector
Commercial Law No. 68 of 1980
مرسوم بالقانون رقم 68 لسنة 1980 بإصدار قانون التجارة
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت
Council of Ministers Law No. 15 of 2017 amending provisions of Law No. 1 of 2016 on the Promulgation of the Companies Law (قانون رقم (15) لسنة 2017 بتعديل بعض أحكام القانون رقم (1) لسنة 2016 بإصدار قانون الشركات
مرسوم بالقانون رقم 68 لسنة 1980 بإصدار قانون التجارة
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت
Council of Ministers Law No. 15 of 2017 amending provisions of Law No. 1 of 2016 on the Promulgation of the Companies Law (قانون رقم (15) لسنة 2017 بتعديل بعض أحكام القانون رقم (1) لسنة 2016 بإصدار قانون الشركات
Arts. 23 and 24 of Law No. 68 require foreign entities conducting business in Kuwait to do so either through a local agent or a Kuwaiti partner, which is typically facilitated through the establishment of a Kuwaiti company with Kuwaiti participants owning at least 51% of the share capital. An exception to these restrictions on foreign ownership is when the relevant Kuwaiti company is established and licensed under Law No. 116 (Art. 12), which allows for increased levels of foreign ownership up to 100%. Law No. 116 permits the Kuwait Direct Investment Promotion Authority (KDIPA) to authorise, on a case-by-case basis, up to 100% foreign ownership in the following industries: communications infrastructure; information technology and software development; entertainment, investment management, among others. Although a Kuwaiti or Gulf Cooperation Council (GCC) national must own at least 51% of any local company, this requirement may be waived if non-GCC investors qualify to invest through KDIPA. A 2017 amendment to the 2016 Companies Law eliminated prohibitive requirements on limited liability companies.
Coverage Horizontal
Sources
- https://www.wipo.int/wipolex/en/text/196499
- https://web.archive.org/web/20220121032233/https://e.kdipa.gov.kw/main/law1162013.pdf
- https://web.archive.org/web/20240216193323/https://kdipa.gov.kw/wp-content/uploads/2023/09/KDIPA-lawbookarabic.pdf
- https://web.archive.org/web/20220707081109/https://kdipa.gov.kw/wp-content/uploads/2021/03/E012016.pdf
- https://web.archive.org/web/20230328070418/https://oxfordbusinessgroup.com/reports/kuwait/2022-report/legal-framework/doing-business-successful-implementation-of-the-foreign-direct-investment-law-serv...
- https://web.archive.org/web/20190220064829/https://www.lexology.com/library/detail.aspx?g=2a1ed309-b58e-4b0e-9766-da6ecb84aa65
- https://web.archive.org/web/20231202183536/https://www.state.gov/reports/2022-investment-climate-statements/kuwait/
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KUWAIT
Reported in 2022, last reported in 2024
Pillar Telecom infrastructure & competition |
Indicator Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in the telecom sector
The government holds a 21.4% equity stake in the telecommunications company Zain, through the Kuwait Investment Authority and the Public Institution for Social Security.
Coverage Telecommunications sector
KUWAIT
N/A
Pillar Telecom infrastructure & competition |
Indicator Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
It is reported that Kuwait does not compel operators with significant market power (SMP) to adopt functional separation; however, compliance with accounting separation is mandatory.
Coverage Telecommunications sector
KUWAIT
Since May 2014
Pillar Telecom infrastructure & competition |
Indicator Licensing restrictions to operate in the telecom market
Law No. 37 of 2014 on the Establishment of Communication and Information Technology Regulatory Authority
قانون رقم 37 لسنة 2014 بإنشاء هيئة تنظيم الاتصالات وتقنية المعلومات
قانون رقم 37 لسنة 2014 بإنشاء هيئة تنظيم الاتصالات وتقنية المعلومات
Under Law No. 37 of 2014 on the Telecommunications and Information Technology Regulatory Commission, the Communication and Information Technology Regulatory Authority (CITRA) issues licenses to telecom service providers. Under Art. 59, the CITRA employees have the power to request and examine licenses, books, registers, documents, and all papers related to the telecommunication activity; Examine and inspect any telecommunication devices, telecommunication installations, or any other facilities associated with providing telecommunication service or establishing, operating or owning telecommunication network; Review any additional information or documents in any form they might be related to the provision of telecommunication services. It is reported that "although Kuwait’s telecommunications industry is technically open to private investment, in practice, the government maintains extensive ownership in the sector and controls licensing and infrastructure development. It is reported that Kuwait’s telecommunications law gives authorities sweeping power to revoke licenses and block content, with little judicial oversight."
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20220319204215/https://citra.gov.kw/sites/en/LawofCITRA/Law%20No.%2037-%202014.pdf
- https://web.archive.org/web/20231108030000/https://ustr.gov/sites/default/files/files/reports/2021/2021NTE.pdf
- https://web.archive.org/web/20240615044454/https://kdipa.gov.kw/wp-content/uploads/2022/08/%D9%82%D8%A7%D9%86%D9%88%D9%86-37-%D9%84%D8%B3%D9%86%D9%87-2014-%D9%85%D8%B9-%D8%A7%D9%84%D8%AA%D8%B9%D8%AF%D...
- https://web.archive.org/web/20251210212622/https://ustr.gov/sites/default/files/2024%20NTE%20Report.pdf
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KUWAIT
Reported in 2024
Pillar Telecom infrastructure & competition |
Indicator Licensing restrictions to operate in the telecom market
Reported minimum capital requirement for telecom licences
It is reported that a minimum capital threshold is required for the acquisition of a telecommunications licence in Kuwait.
Coverage Telecommunications sector
KUWAIT
N/A
Pillar Telecom infrastructure & competition |
Indicator Signature of the WTO Telecom Reference Paper
Lack of appendment of WTO Telecom Reference Paper to schedule of commitments
Kuwait has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector
KUWAIT
Since February 2016
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Nationality/residency requirement for directors or managers
Companies Law No. 1 of 2016
During the establishment process under Companies Law No. 1 of 2016, the manager of a limited liability company can either be a Kuwaiti national or a Gulf Cooperation Council national. The manager can also be a foreign national, but he/she must hold a valid residence in Kuwait. If a foreign national is appointed as a manager, the company will have a temporary licence until he/she transfers his/her residence to the new company, which must be achieved within three months.
Coverage Horizontal
KUWAIT
Since June 2013
Since March 2019
Since March 2019
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت
Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits
قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت
Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits
The Foreign Direct Investment Law of 2013 established the Kuwait Direct Investment Promotion Authority (KDIPA) to solicit investment proposals, evaluate their potential, and assist foreign investors with licensing. Art. 14 sets forth a licensing scheme for foreign direct investment. The Board of KDIPA examines investment proposals against the criteria, principles and assessment rules established by the Board regarding each of the cases set forth in this law. Investment through the establishment of a new enterprise, a foreign branch, and a regional representative office must go through the licensing scheme (Art. 12).
In 2019, KDIPA issued Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits. It is reported that, in approving applications from foreign investors seeking full ownership, KDIPA prioritises local job creation, the provision of training and education to Kuwaiti citizens, technology transfer, diversification of national income sources, contribution to exports, support for small- and medium-sized enterprises, and the utilisation of Kuwaiti products and services.
In 2019, KDIPA issued Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits. It is reported that, in approving applications from foreign investors seeking full ownership, KDIPA prioritises local job creation, the provision of training and education to Kuwaiti citizens, technology transfer, diversification of national income sources, contribution to exports, support for small- and medium-sized enterprises, and the utilisation of Kuwaiti products and services.
Coverage Horizontal
Sources
- https://web.archive.org/web/20220121032233/https://e.kdipa.gov.kw/main/law1162013.pdf
- https://web.archive.org/web/20230503180407/https://kdipa.gov.kw/wp-content/uploads/2021/09/Decision-No.-329-of-2019-1.pdf
- https://web.archive.org/web/20210318105607/https://kw.usembassy.gov/wp-content/uploads/sites/157/2020-Investment-Climate-Statements.pdf
- https://web.archive.org/web/20230126213853/https://www.state.gov/reports/2021-investment-climate-statements/kuwait/
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KUWAIT
Reported in 2022, last reported in 2025
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the application process for patents
Reported local representation requirement for foreign patent applicants
It is reported that foreign applicants are required to appoint a local representative to apply for patents in Kuwait.
Coverage Horizontal
Sources
- https://web.archive.org/web/20251210202756/https://ip-coster.com/IPGuides/patent-kuwait
- https://web.archive.org/web/20251210202923/https://pctlegal.wipo.int/eGuide/view-doc.xhtml?doc-code=KW&doc-lang=en
- https://web.archive.org/web/20230129184853/https://ip-coster.com/IPGuides/patent-kuwait
- https://kadasa.com.sa/the-gcc-patent-office-stops-receiving-new-patent-applications/
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KUWAIT
Since December 1992
Since April 2016
Since April 2016
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the application process for patents
GCC Patent Regulation Decree and By-Law of 1992
Kuwait Patent Law No. 71 of 2013
Kuwait Patent Law No. 71 of 2013
Following the implementation of Patent Law No. 71 2013 and implementing Regulations 115/2016, the Kuwaiti Patent Office stopped accepting national patent applications in 2016. The patent regime reflects the regime in place under the Gulf Cooperation Council (GCC). Patents are granted by the GCC Patent Office to the owner of the invention under the GCC Patent Regulation Decree and By-Law of 1992 and are valid in all the states of the GCC. A patent is granted to an invention that is new, innovative, and industrially applicable. On top of that, it must not contradict the rules of Islam, public order, or public ethics in the GCC states, whether this relates to products, manufacturing operations or manufacturing methods. A patent applicant filed by a non-GCC resident must appoint a registered agent who is a resident of the GCC to represent them in carrying out their activities (Art. 6). Furthermore, the official language in all GCC states is Arabic. No other language is accepted.
Coverage Horizontal
KUWAIT
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
2.02%
Coverage rate of zero-tariffs on ICT goods (%)
42.28%
Coverage: ICT goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
KUWAIT
N/A
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in the Information Technology Agreement Expansion Agreement (ITA II)
Kuwait is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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